will bankroll its worst projects in a couple of months half a billion dollars will go towards medicine pharmacy tech recall sure an important placement deputy head of the russian central bank says much of this money will probably come from the middle east but the fund still has much work ahead to make everyone believe their best washington d.c. . home is the main thing of welcome to the show thank you for coming well first of all i wanted to ask you what makes you or for the new funds you're heading different from other investment fund that are existing in the country because people have been investing into russian economy for a long time i'm sure sure one of the key features is a core investment future so we will be able to invest any money in any business unless there was at least the same amount of going vestment coming from lead in international investors so that's a very unique feature and it's very important because it always allows us to have second pairs of eyes looking over investments we are doing that allows us to bring

foreign investment into the russian economy before you were appointed president of this new fund you were president of the i can promise that equity is that true what was so special about this company what was so special about the job you did there that made you fit for the new position that made president pick you personally for this new position i'm sure well we've been doing investments and i've been doing investments in russia for the last ten years and it's very important investment businesses to have a good track record so not only to make good investments but to have good ags that's so i've been lead into firms one is delta private equity another and i can private tech would say and we've really been very successful in making investments in financial service sector in the just service sector in the sector since the economy so i'll give you an example when i was a delta we invested in one of the you know small medium. companies of that time

called c.t.c. media which is now one of the largest entertainment empires in russia and the value grew from fifty million when we invested in the business to over three billion right now because russian middle class grew and advertisement trade grew so it was investing in those kinds of businesses in telecom sector in other sectors that have been successful in russia and that's why the president in the. bank supervisory board decided to pick me for this position you promise profitability of the investments in russia and you twenty percent but how is that possible if the growth of the russian economy is not more than ten percent is it isn't it a contradiction now we believe that leaders of the russian business and lead in business in russia will grow dramatically and if you look historically in how much value has been created in russia in the billions and billions of dollars of value

in leaders who've been growing at thirty forty fifty percent in russia so we'll be focusing on those lead in segments on some of the lead in businesses which will have two principal types of investment there will be an infrastructure investment which will generate maybe ten to fifteen percent a year from a stable much more predictable sort of less exciting you know businesses will have twenty five thirty percent rates of return which we believe we can generate in private equity businesses and private businesses are growing very fast so in health care in pharmaceuticals a little bit less predictable but definitely with high growth potential i don't know if this is somehow has something to do with your appointment but recently the russian state television channels showed an american movie pretty old movie called other people's money they shoot for a couple of times and this is this is like a pretty iconic movie phone for the united states it's about it's about investing well. speaking about average growth growth this if you say that that leaders grow

like more than twenty percent. and you won the average growth to go higher does that mean that you want less profitable businesses or unprofitable businesses to die and that will that will be good for your business you know we believe that it will improve the statistics will that we believe we will bring a lot of efficiency into the russian economy so we will not only bring capital to invest which is very important but was our international partners will bring know how and management practices that will allow efficient businesses to prosper and be successful and i think what's very important is it can petition is actually very good physical enemy when businesses compete they become more efficiency because they bring more products so i think you know. it's very important to invest to build successful businesses and for lots of businesses to strive to be successful

as businesses where people invest and you mentioned the value of your project so i know that by september you're planning to present a new projects which is couple of months from now what will be the value of the projects you're going to present. you know we have to be very realistic we just basically finished for me as a management company on june first and we in the process of hiring key people and we'll be able to hire them closer to supply and bring october so in the investment process typically takes five to six months so i think we will realistically be discussing was co-investors some projects in pharma industry some projects in. utility infrastructure some projects in the health care sector and we believe that by example of the year we'll do transactions of around five hundred million dollars but that is by the end of the year in september we're just starting discussions of some of the most interesting and exciting opportunities that we still need to evaluate and work together with alcoa investment partners to analyze and really

figure out so you still fishing but can you name us at least a couple of companies that are already on your hook we can look and actually that's a good thing about private equity industry was before the deal is done it's impossible to talk about the potential targets because of best case it increases their valuation expectations and its worst case it just leaves that transaction will be undone because typically we're all in the hands once the transaction is finished rolls of paper signed and that's very important to look at have to invest in companies before you came to today to these new friend are you dragging as some of the partners from these companies through that you've actually we're trying to minimize people impact and actually be a very careful in selecting i would seem because a would want to take in all of the people from a previous fund we also don't want to go in aggressive a higher way don't people from all of the lead in fonts in russia so we've been

actually quite successful in being very gentle in pekin some key people from different firms was out sort of really offending them because we want them to be in . investment partners in the russian market we also became quite a few people was international backgrounds and we have one gentleman was fifteen year over experience and in private backwards a firm another one was ten years experience so we will not only have russian nationals we'll have a well rounded teams that will include international investment leaders as well you were quoted as saying a thing that may sound funny for foreigners you saying that the russian economy is more predictable than in most of the countries what makes you think so and what are the arguments because i'm sure that most of our viewers would say that if russian economy is predictable then then what's unpredictable there was this well i think you know it's actually a great question because when people read use papers and saw all sorts of stories

there's a basically betray russia in certain ways but those stories forget about some very key statistics very fundamental things so i'll mention just a couple russian death is twelve percent of g.d.p. as compared to a hundred percent almost hundred percent in the united states and that's very important because we all know that countless was high debt such as greece and some other european countries are having major major problems because basically they spend more than they've accumulated and that creates tremendous amount of tension and i think we will see lots of those in the next coming months. so that's very very good another statistic russian middle class tripled in the last five years if you look at households was incomes of forward ten thousand a year there was eleven percent of those households into solvent and five it's over thirty percent now so very few people know in this sort of think about the russian middle class tripled in the last five years and the final number in the russian

reserves the third largest foreign reserves sons of the world so again in the very volatile economy when lots of changes are happening lots of things to happen in heaven that question of money is actually a very safe and very positive thing to have so i think on balance in a very volatile world if you look at the numbers if you look at statistics they actually speak pretty well about russia well my family's savings have tripled in the last you to they were one hundred bucks today three hundred so they triple it is so sad statistics that there's thinks are are tricky may be tricky. i've heard that the government will be a first investor that you'll be getting ten billion us from from the russian state is that true and why do you need government money yes. investment it's very important that international investors feels of they have a good partner in russia because when we have traveled to the lead investors and the world they said yes we believe in russia it's possible to generate good trades of return but to do that we need to partner justice for example if you invest in

china and india you could do it on your own but probably would be a good idea to get the local partners i mean that the government is the only really reliable partner in this country well i think government is one of the key and most reliable partners in this country and i think government is making major initiatives to improve investment climates and russia so provide in this capital to share risk as investors not give them any gearing cheese but be their partner and core invest a long is them is a basic idea behind the fund says keeley dimitri. we have had the russians direct investment spotlight will be back shows we will continue this interview so we'll take a break so stay with. her . the

official ulti allocation on the phone the i pod touch from the i choose to switch. on the go city under my faulty smiling old costs and feeds now in the palm of your posts question. please. please her.

mother. thinks. her. welcome back to spotlight i'm al gore nabhan just a reminder that my guest on the show today is killed the myth that he and pad of the russian direct investment fund we're talking about this new fund. about about getting money to invest into russian economy how hard is it well the easiest part of your job i guess is to get those those couple of billion dollars from the russian government you said an interesting thing just with before we took a pause you said that when the government becomes a partner in russia this attracts foreign investors because the part of the

government is a reliable and a rich part but this is strange. you say that this attract government activity in your friend in economy here is attractive for foreigners but on the other hand they used to say the russian government is too active an economy the russian government doesn't let us do for free business on a free market we want less government attention and less good government activity in the economy so so so where is the where is the limits and are there limits for for the government activities in the economy but it's a very good question and as a kid it is a proper balance so for example we will all be a font be able to take control and stakes as a company is so we'll be taking small minority positions you know maybe blocking positions of twenty five percent now together was al queda vestment partners would be able to have control but again it's not government having control it's us having

a minority position but there was a risk when vestment partners given the major position you would be getting the billions of government money this means you would be under total government control . well yes and no because governance a story important so we will have a supervisory board which will be you know your decision making body for the fund and that the actual include quite a few foreigners and governments will actually be you know an important part but not the control and part of that supervisory board and that's again very unique because the whole idea be. and the fund is really to help fund generate returns and allow foreign investors to get those good returns and invest more down the road so it's less commercial and this return focused entity as possible was government really providing help but in the what driving all of the decisions and it's very important because we had a big meeting with mr putin where investors manage and two trillion dollars for the present and asked

a very specific and direct question mr porson will use the funds to promote certain sectors of the economy to really do sort of government like things and he was very clear he wants a fund to generate good return and it was a fun generator which are churn will for sure it means girls businesses it means more employment opportunities it means innovation and with their new zation which are church comes first do you think that the government's come to be to you and make concrete people see will be increased did you feel that union meetings with putin meeting medvedev and what could encourage the government to increase its contribution well it's very important that our business is very new to craddick kind of business what do you do with the credit wants to have to do things so we either show good returns and we get more money you have merits maybe just a few more we don't which are turns and you know we cannot raise any money in order to crack ticket in my language is city code is that you know the demands we need to produce results and it's very important i think there is

a sense if we produce results if it produces good returns then low mining can be managed and even now you know it's a ten billion dollar commitment the first portion we get in this year is only two billion dollars and i think prior to this birth saying you know in the next eight billion the government will below can what kind of deals we're doing i was successful i would bring in a good investor is at the positive story being cranky does it mean avoiding the long difficult projects no i think it means really being focused on. jiggs adjourned the rig which returns and then lead to creation of employment and other things but very much focused on returns because event of the day investors do not like projects was it was money and the whole benefit of investments is actually uniting my knee and intelligent approach to businesses that can grow and the saw result produce good a good profit so i think it's

a win win for the companies for investors for the government if you don't want to name you or possible partners can you tell me which industries are on the list of your priorities way going to where are you going to. put the money you get i guess now not only in the with and gas production just told you give us some examples we believe you know agriculture is really a great sector and russia is a great place for agriculture and you know has lots of agricultural businesses that are growing dramatically but that the on the investment so really that agriculture is going to be very interesting to see today we i'm done it's a circumstance that we should have our own cucumber is not exactly yes that's true and you know agriculture prices increasing dramatically so agribusiness is very important health care again health care can be much more efficient and can be improved dramatically with proper investments i was proper and know how energy efficiency we all know that we have so much dependent on energy prices under all

sorts of new energy efficient technologies that produce very significant cost savings so it's not venture projects it's not very risky early start or early stage projects so there's a project where we can see sort of predictable cash flow and such as energy efficiency it will produce good results but also good for the country it just crossed my mind the creation of fewer front. trying to track more new or foreign investors promising good returns doesn't mean russia is looking at a new wave of massive. zation well privatization is definitely coming and it will be the largest privatisation in the history of russia actually and there are a number of businesses that are being put up for sale and that's very positive because it shows the government again wants to play a lesson for all in the economy and obviously we will also be looking at privatization projects and i think it's very important that main international investors main international funds are competing to participate in those projects

because and surprise goes up and that's good for the government you mentioned agriculture you mentioned health care this of course the priority industries where russia wants investment to flow but. what are they what are the industries that. foreign investors themselves are interested in in russia see and that's again a very key question because we didn't define those priorities just by what russian government wants we actually went to leaders of investment funds in the world and they asked for example people in the arab world what kind of industries would you consider attractive in russia and they actually did mention agricultural health care and let's see if the russian the russian deputy head of the central bank mentioned the necessity of the tracting the arab capital the capital from arab countries to russia why such special attention to this part of the world to arab

money well there is first of all quite a bit of light is that is being managed and for example i would be investment authority to manage money just over six hundred billion create investment office man the just over two hundred fifty billion and they've been in discussions with both of them and they're very much interested was what russia has to offer and we believe that russia offers awards of interesting investment opportunities to arab investors but they were just not so much focused on the region they preferred to invest in other parts of the world so being able to a try. bam as well as china and european farms and american farms is actually good for the russian economy in the one of his speeches one of his recent speeches that as a matter of fact prime minister putin promise that he will be protecting foreign investors i think he even said personally taking care of for investors is it enough to convince foreigners that their money in your hands are safe well i think once again

that had a very positive meeting with mr porter and they came very energized and very much focused on specific sectors following that meeting so i think it was very important for them to hear that message because that's a very important message for them to hear but in addition there are all sorts of institutional efforts that are taken place and the fund this one of those efforts and given proper governance have been successful or this will contribute to the story so i think it's very important for them to here's a message but the event of the day they will be happy once they return a dollar now and takes three dollars you know four years from now that's basically what will make them you know really happy besides growing and helping to grow russia and keep computers i'm sure for an investment and besides all that gas of course which is which is a special issue i'm sure of the foreign investors would like to invest into russian high tech industry because because it is growing because it is

a government priority and we just talked about it that if you get those investments if people will be ready to give you the many can you guarantee that you have in russia enough specialists enough people to guarantee that these investors that this money going to work well we believe that high tech is really key industry in russia and young the i.p.o. which was one of the largest why it was successful high tech i.p.o. shows there is major promise in russia major promise in russia because very talented very sophisticated. programmers and people russia is one of the most educated countries in the world with a keyboard as we believe it's possible to make very good returns they're definitely going to be investing but we're not giving keen anything it's very important we share risks we're putting our money in projects we believe return is going to be good and we assure that risk and the trade turns at the preacher interviews as investors so yes we believe that high tech is

a great market to invest and so it will not be providing any guarantees we believe that investors will know it's a good sector to invest and they will be invest in there ok and just just to conclude to conclude this interview. is it dry the impression i got from talking to you and i think the views on this and that one hundred percent of these the investments coming through your fund from abroad will be guaranteed by the russian government is that true you know there are a lot bigger into it again we are quite invested with them so we believe we'll make good return and if i'm a good return on mine it doubles in three four years if we don't make good return on the loose money we'll lose the money and international best result follows the money but all of us little do everything in our power and repudiation is very important to us until the russian government that will be making successful investments but it's very important that they make independent decisions we make independent decisions and together we make very good profitable investments in

russia so you promises to be fun thank you very much thank you thank you for being with us and just to remind you that my guest today was killed had probably a russian direct investment and that's it for now from all of us if you want to have your same spot or have someone in mind who you think might get into the next time here drop me a line and how they're not a pat. on the knees and that's cute like interact who did that but more than common thought it was going on in and outside until then stay on our t.v. . take it. for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers on.

in india oh geez availability in the movie going to join the hotel rooms the violence the gateway photo the grand imperial trying to tell us that. you can

a letter to know who to see don't need to go and. read this and the colonel was toto as a retreat. european leaders hammer out a deal on a second bailout for greece worth one hundred nine billion euros at a crunch summit in desperate bid to save the single currency private lenders will also be contributing for the first time to a state's rescue to the tune of thirty seven billion while the ease of emergency fund for debt stricken nations will be increased. the troubles though aren't deterring other nations from seeking to join like serbia as it prepares to extradite its last war crimes suspect or i had said the capture has been the final condition for the opening up of membership talks with the e.u. but there is skepticism among some serbs that brussels won't shift the goalposts again. and fear over phone tapping continues unabated britain engulfing the

highest echelons of power in the country odds are shortening on prime minister david cameron becoming a casualty himself of the crisis due to his links and friendship with murdoch media empire executives been arrested. as the phone hacking scandal is raging on both sides of the atlantic peter lavelle and guest discuss the future of the murdoch media empire cross talk coming up next. and you can. follow and welcome to cross talk i'm peter lavelle came in the murdoch empire as

the phone hacking scandal in the u.k. engulfed more victims and politicians look for cover all eyes are on the future of news corp and its assets in the us and beyond has the murdoch family finally outfoxed itself. and if you. crossed out the implications of the phone hacking scandal i'm joined by kevin zeese in baltimore he is a spokesperson and lawyer for the government accountability group protect our elections and author of an open letter to the f.b.i. and s.c.c. urging them to investigate murdoch's news corporation in the us in washington we have dave south danae he is communications director for free press and in london we cross it toby young he's a journalist and author of how to lose friends and alienate people all right gentlemen crosstalk rules and in fact that means you can jump in anytime you want kevin if i can go to you first because of your open letter here i took a look at some of the button laws and by.